1. Field of Invention
Aspects of the present inventions relate to methods and systems useful for electronic brokerage services and, more particularly, to methods and systems for providing an electronic market for futures contracts and associated instruments.
2. Discussion of Related Art
Buyers and sellers of various financial instruments currently transact business within a variety of established markets. Some of these established markets are traditional, brick and mortar exchanges with a trading floor, some are over the counter markets that operate using voice or electronic communication among trading desks and others are virtual, electronic exchanges. A particular example of an over the counter market is the current credit default swap (CDS) market.
A credit default swap is a contract between a buyer and a seller which shifts the financial risk that a reference entity may experience a credit default event from the buyer to the seller. In exchange for assuming this risk, the seller receives some form of consideration from the buyer, such as periodic cash payments. The seller's obligation in a CDS is triggered if the reference entity defaults on a credit obligation, such as by entering bankruptcy. While the CDS is the foundation of the over the counter credit derivatives market, this market includes many other financial instruments. Thus, the current over the counter credit derivatives market provides sundry instruments for executing financial tactics such as hedging and speculation.